Stress on tax reforms to boost investment in cement sector
Jannatul Islam
19th May, 2021 10:23:10
The government should reform the tax structure to boost investment in the cement sector as local manufacturers are burdened with taxes.
Some 37 companies including 5 foreign manufacturers are producing nine million tonnes of cement in Bangladesh against the annual domestic demand for 4 million tonnes, according to Bangladesh Cement Manufacturers Association (BCMA).
The cement manufacturers are now paying Tk 500 for importing each tonne of clinker, the main raw material for cement. Besides, 5 per cent customs duty and 3 per cent advance income tax put a huge burden on businesses to make new investments, BCMA leaders have said.
After a trying year, cement makers bracing for slow recovery
With the year about to come to a close, the cement sector finally experienced some relief from the ongoing pandemic thanks to increased consumption alongside fresh investments.
Makers of the key construction material have been in a tight spot since the Covid-19 outbreak began as almost all major development projects in the country, both public and private, were halted for an extended period. The cement sector managed to survive even though the manufacturers sat idle throughout April-September, Mohammed Amirul Haque, managing director of Premier Cement, told The Daily Star.
But now, there are various projects to work on, including mega projects such as the Karnaphuli Tunnel.